Commerce Secretary Howard Lutnick, back in Washington after two days helping to negotiate a US-China trade framework in London, said Wednesday that Trump gave his team permission to back off its aggressive stance against China to get a deal done. Lutnick told CNBC in his first interview since the announcement of the US-China trade agreement late Tuesday night that after 25 hours of negotiations over two days with his Chinese counterparts, the world’s two largest economies are in a better place now after a series of escalations over the past month. Both countries, accusing one another of violating the terms of the previous deal agreed upon in Geneva last month, had increased export restrictions on various goods. “The Chinese had these rare-earth magnets and they were slow-rolling it. When they didn’t deliver the rare-earth magnets, we put on our countermeasures,” Lutnick said. “We were at mutual-assured annoyance.” He said the talks were respectful, without any yelling or screaming, and both countries believe the outcome was a win-win. “But we needed to make sure when they pulled out their card with these rare-earth magnets, we put in ours that said, ‘look you just can’t do that to America. America’s too great, too strong,’” Lutnick said. He said, for example, the Trump administration could have subpoenaed Chinese banks to open their records and “see all the things they had done wrong.” And he noted the White House placed curbs on ethane exports to China in retaliation. “Ethane makes plastic. We supply 98% of their ethane. No ethane, no plastic. Imagine trying to run an economy with no plastic,” Lutnick said. “If you want to annoy us, the United States under Donald Trump is strong enough to annoy you back equally.” Instead, Lutnick said Trump opted to “go all positive.” “He created the right environment for us to do a very positive deal with the Chinese,” Lutnick said. He noted that China has agreed to immediately approve licenses for any US company that requests rare-earth magnets, used in a host of electronics, automobiles, contrast dyes for MRIs and jet engines. And in exchange the United States will remove some of its export restrictions, including ethane – but short of powerful AI chips that the administration believes pose a national security threat if China were able to buy them. Lutnick even said the negotiating room at the opulent Lancaster House provided the team a level of familiarity. “The room we were in, I never felt more comfortable, because every inch of it was gold-leafed,” he said. “It was the perfect place to negotiate a Donald Trump deal.” Still, Lutnick cautioned, the United States maintains high tariffs on China and a number of remaining export controls. Despite the “rare-earth card” that Chinese Premier Xi Jinping played, Lutnick said, “President Trump holds just as many cards, and because he has the biggest economy now, he holds more cards.” A shift in focus The Trump administration will shift its focus on other trade deals now that it has finalized a framework for an agreement with China. Those next agreements could come as early as next week, Lutnick said. “There are so many coming but when you’ve got (Treasury Secretary) Scott (Bessent), (US Trade Representative) Jamieson (Greer) and I spending 25 hours locked in a room with the Chinese, we’re not really doing the other deals,” Lutnick said. “You’re going to see deal after deal, they’re going to start coming next week and the week after and the week after. We’ve got them in the hopper.” Lutnick said the White House’s trade negotiating team is in “good shape” on trade agreements with a number of countries. Bessent has said the administration is in active negotiations with 18 trading partners after reaching tentative agreements with the United Kingdom and China. Despite many weeks of negotiations since Trump paused his “reciprocal” tariffs on April 9 — with a July 8 deadline rapidly approaching — the administration continues to promise looming deals with little progress to show for it. Lutnick said Trump is in no rush to make any deals, preferring to hammer out better agreements that benefit American businesses and consumers. “Good shape isn’t good enough for the United States of America. We want great deals that are fundamental for America,” Lutnick said. “We can get them done. We need to open these other countries’ markets. Our farmers, our ranchers, our fisherman, they are going to have just a great time. Our machinists are going to sell a lot of equipment overseas. Boeing always does amazingly well in these deals.” The key factor, Lutnick said, is opening up US exports to foreign markets that impose tariffs and other non-tariff trade barriers such as taxes and export controls that limit American companies’ access to those countries. “This is the key to us: Can we open up our exports and end this nonsense of a $1.2 trillion trade deficit? And that’s what we’re working on,” Lutnick said. “We just want to make sure they’re the best deal we can possibly make. We don’t want to rush. And Donald Trump isn’t going to accept the rush. He only accepts the best from us, and we’re going to give it to him.”
If you annoy Trump, he can annoy you back equally, Howard Lutnick says
TruthLens AI Suggested Headline:
"Lutnick Discusses US-China Trade Negotiations and Future Trade Agreements"
CNN
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TruthLens AI Summary
Commerce Secretary Howard Lutnick recently returned to Washington after participating in negotiations for a US-China trade framework in London, where he shared insights on the progress of the discussions. In an interview with CNBC, Lutnick explained that President Trump authorized his team to moderate their previously aggressive approach towards China in order to secure a deal. He emphasized that after 25 hours of negotiations, both nations have improved their relationship, which had experienced tension due to accusations of violating previous agreements. Lutnick noted that both sides had engaged in a respectful dialogue, avoiding confrontational tactics. He described the negotiations as being characterized by a sense of 'mutual-assured annoyance,' particularly in relation to the issue of rare-earth magnets, which China had been slow to deliver. The United States had responded with countermeasures, including curbs on ethane exports, which highlighted the economic leverage that the US holds over China. Lutnick asserted that the Trump administration is capable of responding strongly to any provocation from China while also taking a more constructive approach to negotiations.
As the trade talks progressed, Lutnick indicated that China has agreed to expedite the approval of licenses for US companies seeking rare-earth magnets, which are crucial for various industries, while the US will relax some of its export restrictions, excluding sensitive technologies like advanced AI chips. He expressed confidence in the US negotiating team's capability to secure beneficial agreements, stating that the administration is in active discussions with multiple trading partners. Lutnick mentioned that the focus will shift to finalizing additional trade deals, emphasizing the importance of obtaining favorable terms for American businesses. He articulated the administration's commitment to addressing the significant trade deficit and ensuring that any new agreements are advantageous for American farmers, ranchers, and manufacturers. Overall, Lutnick conveyed a sense of optimism about the future of US trade negotiations, asserting that the administration aims to negotiate deals that are not just satisfactory but exceptional for the nation.
TruthLens AI Analysis
The article presents a commentary by Commerce Secretary Howard Lutnick regarding the recent negotiations between the United States and China over trade issues. It highlights the shift from an aggressive stance to a more conciliatory approach by the Trump administration in order to facilitate a trade agreement.
Purpose of the Article
The commentary aims to communicate a sense of optimism about US-China relations, suggesting that the two nations have reached a more stable ground after previous tensions. This portrayal could be intended to bolster public confidence in the current administration's handling of foreign trade relations, especially amid criticisms of its previous hardline tactics.
Public Perception
By presenting the negotiations as respectful and productive, the article seeks to cultivate a positive image of the Trump administration’s diplomatic efforts. The language used emphasizes mutual respect and collaboration, which may serve to alleviate concerns about the potential for ongoing trade wars.
Information Omission
While the article focuses on the success of the negotiations, it does not delve into the broader implications of the trade agreement or any underlying issues that remain unresolved. This selective focus might obscure the complexities of US-China relations, including ongoing human rights concerns and geopolitical tensions.
Manipulative Nature of the Article
There is a moderate level of manipulation in the article, primarily through its framing of the negotiations as a “win-win” scenario. By emphasizing the positive outcomes and downplaying the challenges, it may lead readers to adopt an overly optimistic outlook on the trade agreement's long-term viability.
Truthfulness of the Content
The article's content appears to be based on actual statements made by Howard Lutnick; however, the interpretation of those statements can vary. The portrayal of negotiations as respectful and beneficial may not fully capture the ongoing complexities of trade relations between the two nations.
Societal Impact
The narrative presented could influence public opinion, potentially swaying perceptions of the effectiveness of the Trump administration's trade policies. Should these negotiations succeed, it could lead to a more stable economic environment; however, if issues arise, it may result in disillusionment among supporters.
Target Audience
This article seems to cater to audiences supportive of the Trump administration, particularly those interested in business and trade. By framing the negotiations positively, it may aim to reassure business leaders and investors about the administration's capabilities.
Market Implications
The article could influence stock market sentiments, particularly in sectors reliant on US-China trade relations, such as technology and manufacturing. Companies involved in rare-earth minerals or plastics could see fluctuations in their stock prices based on the perceived success of these negotiations.
Geopolitical Relevance
The trade framework discussed in the article is significant within the context of global power dynamics, especially as the US and China are two of the largest economies in the world. The outcomes of these negotiations can have far-reaching effects on international trade policies and relationships.
Potential AI Involvement
While there is no direct evidence suggesting that AI was used in crafting this article, certain AI models could potentially assist in generating reports based on data and statements from key figures. If AI had a role, it might have shaped the narrative to align with specific political or economic viewpoints.
In summary, while the article provides insights into the US-China trade negotiations, its optimistic framing and selective emphasis on positive outcomes raise questions about the broader implications and complexities of international relations.